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From:karen.denne@enron.com
To:janel.guerrero@enron.com, james.steffes@enron.com, richard.shapiro@enron.com,paul.kaufman@enron.com, jeff.dasovich@enron.com, susan.mara@enron.com, sandra.mccubbin@enron.com, harry.kingerski@enron.com, mark.palmer@enron.com, steven.kean@enron.com, s
Subject:State-by-state forecast for summer
Cc:karen.denne@enron.com
Bcc:karen.denne@enron.com
Date:Tue, 10 Apr 2001 06:04:00 -0700 (PDT)

Power Situation by State

By The Associated Press

A state-by-state look at the electric power situation for
summer:


Alabama: Blackouts and rolling brownouts are unlikely as
utilities are required to maintain a reserve 15 percent above what
is needed to meet peak demand. Residential and business customers
will pay rates about 1.1 percent above a year ago.


Alaska: Blackouts and brownouts are unlikely. Hydroelectric
power is plentiful, and generating systems are not being taxed.
Electric bills are expected to fall slightly.


Arizona: There is little likelihood of a power interruption.
Utilities are prepared to handle the summer electricity demand, and
price caps prevent the major utilities from increasing rates.


Arkansas: Blackouts and rolling brownouts are highly unlikely.
Electric bills are expected to rise 5 percent as increased fuel
costs are passed on to customers and because the summer is expected
to be even hotter than a year ago, when readings topped out at 111
degrees in Little Rock.


California: Forecasts of tight power supplies throughout the
West have energy experts in California warning of statewide rolling
blackouts this summer. Power grid managers say concerted
conservation efforts, accelerated construction of new power plants
and ``a bit of luck'' could help avoid blackouts. Grid managers
have already ordered rotating blackouts on four days since January.
Los Angeles will most likely be spared because the L.A. Department
of Water and Power provides its own generation and isn't connected
with the state's grid.


Colorado: The state is unlikely to experience blackouts or
brownouts as 93 percent of its power comes from coal-fired plants.
Because of fixed, long-term contracts for coal, producers do not
anticipate any fuel cost adjustments.


Connecticut: No brownouts or blackouts are anticipated.
Brownouts are possible, though, if there is a prolonged spike in
usage while power plants are down. Utilities are under a mandatory
price rate cap.


Delaware: Enough power is available to avoid blackouts or
brownouts, but questions linger about whether utilities can deliver
it. Power is undergoing deregulation in Delaware and officials are
concerned over the possibility of increased costs. However, under a
1998 deregulation law, the cost of electricity is temporarily
capped.


Florida: Power outages are unlikely this summer as the state has
reserves of about 20 percent. Utility companies have already
increased their rates to cover higher fuel costs. Unless coal and
oil wholesale prices increase sharply, consumers should not expect
major rate increases.


Georgia: Blackouts and brownouts are unlikely in the state
because a for-profit regulatory system gives suppliers an incentive
to build more generating plants. Rising costs for natural gas,
which fuels almost all new electric plants, could increase
residential electric bills by 25 percent.


Hawaii: There is little likelihood of blackouts, rolling
brownouts or price spikes. As an island state, Hawaii's electricity
system is not connected with that of other states. Each island has
its own generation system and supply is sufficient to meet demand.


Idaho: There is little chance of blackouts or rolling brownouts
but bills are rising. The state's largest utility wants a 34
percent increase in residential rates.


Illinois: Blackouts and rolling brownouts are unexpected as
generating has been increased with a number of small ``peaker''
plants. Homeowners shouldn't see a rate increase, either;
electricity rates are locked in through 2004 under the state's
deregulation plan.


Indiana: There is no expectation of blackouts or brownouts
unless there are weeks of very hot weather or a power plant stops
operating. Utility companies are urging consumers to conserve
energy and believe that will maintain the remaining state energy
surpluses, which have decreased from 30 percent to 10 percent over
the past decade.


Iowa: While the state does not expect blackouts this summer,
problems could occur as early as 2002 with serious capacity
problems by 2006. Only single-digit price increases are expected
this summer.


Kansas: Blackouts and rolling brownouts are unlikely. Kansas has
never had a regional transmission blackout. The size of electric
bills will depend on how hot it gets and how much power customers
use for air conditioning. State law prohibits price spikes by
regulated utilities, which supply 70 percent of residential
customers.


Kentucky: Electricity rates in the state are among the lowest in
the nation, but will likely rise between 3.2 percent and 3.8
percent by 2003, largely due to pollution control equipment
upgrades. There is adequate supply to avoid brownouts and blackouts
this summer.


Louisiana: No blackouts are expected this summer but utility
officials say the state is on the verge of a power crisis unless
more plants are built. Consumer advocates say bills are likely to
increase by as much as 30 percent with very high natural gas prices
and a hot summer in the forecast.


Maine: Five new natural gas-fired power plants are on line or
coming on line soon, reducing the prospect of any rolling
blackouts. No consumer rate increases are expected.


Maryland: The Public Service Commission does not expect any
service interruptions and believes electricity rates will not rise.
An electric deregulation plan implemented last year reduced, and
then froze, rates for homes and businesses.


Massachusetts: Blackouts and brownouts are unlikely because New
England has added a half dozen new power plants in the past 18
months _ enough supply to outpace demand surges. Residents will
likely see hefty rate hikes in the winter, including as much as 42
percent for some consumers.


Michigan: Under a state law signed last year that will
deregulate the electricity industry in 2002, utilities cut rates by
5 percent and must cap those rates for five years. Although demand
for electricity is growing between 2 percent and 3 percent
annually, utilities say they have enough supply to meet demand.


Minnesota: No blackouts or rolling brownouts are likely unless
there is an extended heat wave or a power plant failure.
Electricity costs are expected to remain steady. Many customers,
however, will spend the summer months paying off natural gas and
electricity bills from the long, cold winter.


Mississippi: Blackouts this summer are unlikely. The two main
power suppliers are taking measures to boost their reserves during
peak summer months and new independent generating plants also are
available. Mississippi Power expects bills for customers to be 3
percent to 6 percent higher this summer. Entergy, another supplier,
has not filed its summer rate plan yet.


Missouri: Utilities have plenty of generating capacity and
supply contracts, so service interruptions aren't expected. The
state Public Service Commission says three large utilities are
bringing new or expanded generating plants on line. State law bars
rate spikes by PSC-regulated utilities, so customer bills shouldn't
reflect higher generating costs.


Montana: Blackouts and rolling brownouts are not expected.
Montana Power customers will not see price increases this summer
because the company is under a virtual rate freeze until July 2002.
Flathead Electric's rates rose 29 percent on April 1 and an
additional 60 percent increase is possible this fall. The two
companies serve more than half of the customers in Montana.


Nebraska: No rolling blackouts are expected. Electric bills are
not expected to increase since the state's largest utility already
increased its rates by 2 percent to 4 percent.


Nevada: Major utilities are not expecting blackouts or rolling
brownouts, but monthly electricity bills for two power companies
will go up 1 percent to 2 percent a month through September, based
on already-authorized incremental rate increases. State lawmakers,
reacting to California's energy crisis, are processing measures
that would block deregulation from taking effect. Gov. Kenny Guinn
also has said he will not let deregulation take effect under 1997
and 1999 laws unless he's confident consumers won't be harmed.


New Hampshire: Blackouts are unlikely but customers may have to
conserve power on very hot days. As part of deregulation, rates
will drop about 12 percent for customers of the state's largest
electric utility. But rates could rise 20 percent to 30 percent for
customers of the second-largest utility.


New Jersey: Blackouts are unlikely because of protections
included in a 2-year-old energy deregulation law. Rates are capped
until 2003. However, regulators allowed utilities to raise natural
gas rates over the summer, 2 percent a month through July, to make
up for money lost over the winter to skyrocketing fuel prices.


New Mexico: Most of the state will escape power outages and rate
increases during the summer months.


New York: To head off potential power shortfalls in New York
City, the New York Power Authority is rushing to finish
construction of 11 small natural gas turbines. Upstate New York's
largest utility says it has enough power to avoid blackouts and
brownouts during the summer. Rates are regulated across much of the
state, but in New York City customers pay market prices.


North Carolina: No blackouts or rolling brownouts are expected.
No major rate cases are pending in the state among the large,
regulated utilities.


North Dakota: The state exports about 70 percent of the
electricity produced from seven coal-fired power plants and is
facing no power shortages this summer. Electricity bills to power
air conditioners are not expected to double from the previous
summer the way natural gas bills doubled in the winter.


Ohio: No blackouts or rolling brownouts are expected unless
there is a long heat wave. Prices for residential customers will
remain flat for the next five years as part of a deregulation plan
that took effect Jan. 1.


Oklahoma: There is little likelihood of blackouts or rolling
brownouts between May and September, but Oklahoma Gas & Electric,
which has 700,000 customers in the state and northwestern Arkansas,
expects electricity bills to be 10 percent to 15 percent above last
summer.


Oregon: Some extraordinary measures may be needed to ensure
there are no rolling blackouts or brownouts this summer. The
measures could include curtailing hydroelectric programs that help
salmon. Price spikes could occur.


Pennsylvania: No blackouts or brownouts are expected. The state
is a net exporter of power and has more than enough supply to meet
demand. Electricity bills will not rise this summer because power
companies agreed to cap their rates, in come cases through 2010.


Rhode Island: Blackouts are unlikely, partly because of power
plants built in New England in recent years. Businesses could see
electric rates rise as much as 46 percent.


South Carolina: With reserves of about 15 percent, there is very
little chance of power interruption in the state. Two major
utilities have obtained rate increases of about 3 percent to
reflect higher fuel costs. Increased demand from summer air
conditioning normally pushes summer bills up 50 percent by July.


South Dakota: The majority of power comes from dams or
coal-fired generating plants rather than natural gas. There is
little chance of power shortages this summer and rates should
remain stable.


Tennessee: Tennessee Valley Authority electric rates were last
raised in 1997 and should remain steady through the summer. No
blackouts or brownouts are expected.


Texas: Additional transmission lines should reduce the
likelihood of blackouts or rolling brownouts. Certain fuel
surcharges related to natural gas prices may cause higher
electricity bills.


Utah: Officials are counting on Californians to cut their energy
use and free more power for use on the Western electricity grid to
avoid blackouts or brownouts. Utah power has received a 9.4 percent
interim rate increase and has 19 percent rate increase awaiting
approval.


Vermont: Chances of blackouts or brownouts are low. Much of
Vermont's electricity is imported from Quebec, though the state is
also dependent on the regional power grid that serves New England.
Electric rates are regulated.


Virginia: Blackouts and brownouts are highly unlikely because of
an increase in the generating capacity of the state's largest
utility. The size of electric bills will be determined by the
weather and consumption, not any change in rates, which are capped
through 2007.


Washington: Blackouts and brownouts are unlikely, although
utilities will have a razor-thin power margin that would not
withstand the loss of a power plant or transmission line.
Electricity largely comes from dams, and a severe drought is
reducing the water supply and raising prices. Industrial and
residential customers of public utility districts have already seen
rate increases. Rates could rise 10 percent to 20 percent this
year.


West Virginia: Generating capacity is sufficient to meet peak
air conditioning needs. None of the four major utilities has
requested a rate increase.


Wisconsin: Electric bills could run as much as 10 percent higher
this summer because of surcharges to cover rising prices for
natural gas, which fuels many plants. State officials ordered
utilities in December to increase their reserves from 15 percent to
18 percent to bolster reliability during the summer.


Wyoming: Blackouts and brownouts are unlikely but could occur
because the state grid is intertwined with other systems that could
experience shortages. Xcel Energy, serving Cheyenne, has applied
for a 57 percent price increase. Similar filings are expected from
other suppliers.